ABI said decision will have grave impact on businesses
Commenting on today’s announcement from the Secretary of State for Transport that Air Travel Organisers’ Licensing (ATOL) bonds are to be replaced by a flat £1 levy on holidays, the ATOL Protection Contribution (APC), Nick Starling, the ABI’s director of general insurance and health, said:
"We are disappointed with the decision to replace a highly effective private sector scheme, with what amounts to nationalising a functioning market. This will have a grave impact on business, and the timescale for implementation is irresponsible.
"The current system of bonding creates an incentive for tour operators to trade responsibly, since the cost of the bond is calculated according to the risk the tour operator presents. The new flat levy system does not provide such an incentive.
"The ABI does not believe that a £1 per passenger levy will provide sufficient financial backing for the scheme. Costs above those covered by the levy will largely fall on the taxpayer."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
